Sweden Eyes Air-Travel Tax
March 16, 2017 Taxation in Sweeden
On March 15th, the Financial Markets Minister of Sweden Per Bolund said that the national government plans to implement a new tax on the sale of airline tickets.
The new tax is expected to be levied at a rate of between SEK 80 and SEK 430, with the exact rate to be based on the distance of travel purchased.
The tax, which is yet to be approved, is intended to compensate the government for tax losses arising from a lack of VAT on international flights, and the relatively low taxes paid by airlines on their greenhouse gas emissions.
The Minister also explained that the tax is a form of green-tax reform.
The proposed tax has strong opposition from certain political parties, but it is not expected that the measure will be rejected, as it is unlikely that the opposing political parties will be able to unite and cooperate to vote down the proposal.